Question

If an account earns 3% simple interest per year, how many years will it take $1 to grow to $3? (round your answer to the nearest 2 decimal places).

Answer 1

It will take approximately 66.67 years for $1 to grow to $3 at a simple interest rate of 3% per year.

Step-by-step explanation:

To determine how many years it will take for $1 to grow to $3 at a simple interest rate of 3% per year, we use the formula for simple interest, which is Interest = Principal × Rate × Time. In this case, the final amount desired is $3, starting with $1, which means the total interest needed is $2 ($3 final amount - $1 principal = $2 interest). Plugging in the values into the formula: $2 = $1 × 0.03 × Time. Solving for Time, we get Time = $2 / ($1 × 0.03) = 66.ºr{6} years, which when rounded to the nearest two decimal places is 66.67 years.